Harris Corp

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HRS : NYSE : Technology
$110.56 -0.49 | -0.44%
Today's Range: 110.15 - 111.16
Avg. Daily Volume: 850000.0
05/26/17 - 4:02 PM ET

Financial Analysis


HARRIS CORP's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. HARRIS CORP has weak liquidity. Currently, the Quick Ratio is 0.63 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 13.42% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)1489.01550.0
EBITDA ($mil)349.0358.0
EBIT ($mil)283.0293.0
Net Income ($mil)85.0168.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)302.0335.0
Total Assets ($mil)11107.011900.0
Total Debt ($mil)4213.04793.0
Equity ($mil)2914.03366.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin39.6939.1
EBITDA Margin23.4323.09
Operating Margin19.0118.9
Sales Turnover0.560.5
Return on Assets5.230.9
Return on Equity21.7512.26
Debt Q3 FY17 Q3 FY16
Current Ratio1.661.42
Debt/Capital0.590.59
Interest Expense42.046.0
Interest Coverage6.746.37


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)121.74124.48
Div / share0.530.5
EPS1.311.26
Book value / share23.9427.04
Institutional Own % n/a n/a
Avg Daily Volume847216.0715956.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.27 for the Communications Equipment industry and a discount compared to the S&P 500 average of 25.54. Conducting a second comparison, its price-to-book ratio of 4.64 indicates a significant premium versus the S&P 500 average of 3.06 and a premium versus the industry average of 3.21. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. The valuation analysis reveals that, HARRIS CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HRS 22.03 Peers 24.27   HRS 15.09 Peers 14.52

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

HRS is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

HRS is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HRS 18.25 Peers 20.94   HRS 0.22 Peers 1.04

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

HRS is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HRS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HRS 4.64 Peers 3.21   HRS 56.03 Peers 3.94

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HRS is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

HRS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HRS 2.16 Peers 2.95   HRS 4.47 Peers 13.78

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HRS is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HRS significantly trails its peers on the basis of sales growth

 

 

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